Digital bank licences come to Singapore
(28 June 2019 – Singapore) The Monetary Authority of Singapore (MAS) plans to issue up to five new digital bank licences as it seeks to open up the island's market to non-bank players.
The licences will be split between providers targeting retail customers and those earmarked for outfits aimed at SMEs and other non-retail segments.
Applications, which open in August, are open to firms headquartered in Singapore and controlled by Singaporeans. Foreign companies can apply if they form a joint venture with a local player.
MAS says that new entrants will add diversity to Singapore's banking market and help reach underserved market segments, as well as push incumbents to improve their own digital services. The move will also help Singapore keep up with Hong Kong, which doled out its first licences in March to help spark innovation in the city and strengthen Hong Kong’s position as an international financial hub.
Tharman Shanmugaratnam, chairman, MAS, says: "The new digital bank licences mark the next chapter in Singapore’s banking liberalisation journey. They will ensure that Singapore’s banking sector continues to be resilient, competitive and vibrant."